Market Tone
Export prices were offered higher due mainly to the strengthening of the Thai baht to 36.3
baht/US$ VS. 36.5 baht/US$ in the previous week. This is an 8-year high for the baht.
Some quotations are based on 36.0 baht/US$ following the concerns over exchange rate
fluctuation. In addition, domestic rice traders and millers reportedly offered higher domestic
prices in anticipation of more enquiries from foreign buyers who face difficulties in sourcing
Vietnamese rice. The Vietnamese government has reportedly imposed a ban on rice exports
in order to ensure domestic supplies, as current crops are adversely affected by typhoons
and pests. However, Thai domestic prices will temporarily increase as foreign buyers are still
hesitant to purchase Thai rice under current high prices. Moreover, they expect prices to
weaken following the Government’s plan to release intervention stocks of 3.1 million tons,
of which 2.5 million tons are white rice and 0.6 million tons are fragrant rice.